Share market decline breaks ETF monthly growth record

The consecutive monthly trend of exchange traded fund (ETF) growth in Australia has stalled in April after global share market declines triggered a 0.9 per cent fall in total industry assets.

According to Betashares’ latest monthly Australian ETF Review, it was the industry’s first fall after months of continued growth and activity, with its market capitalisation also falling by $1.7 billion to $195 billion.

Despite the decline, net inflows in April remained steady at $1.2 billion after an influx of new products hit the Australian Securities Exchange (ASX) and CBOE Australia, with eight new active ETF products and two moderately geared funds focused on Australian equities and Australian and global equities.

April also saw ETF trading value rise by 22 per cent, with the ASX hitting $11 billion.

Similar to March, international equities drove inflows into ETFs with approximately $544 million in value, followed by $318 million for Australian equities, $237 million for fixed income, $61 million for multi-asset and $51 million for commodities.

Returning 11.7 per cent, Global X’s Ultra Short Nasdaq 100 Hedge Fund topped the product performance ranks, but was closely followed by Betashares’ Geared Short U.S. Treasury Bond Fund-Currency Hedged (Hedge Fund) at 11.5 per cent, Global X’s Copper Miners ETF at 10.5 per cent, Betashares’ U.S. Equities Strong Bear Currency Hedged (Hedge Fund) also at 10.5 per cent and Betashares’ Energy Transition Metals ETF at 10.4 per cent.

ETF provider market capitalisation remained relatively stable and still concentrated among the top four entrants: iShares (30.92 per cent), Betashares (29.31 per cent), Vanguard (24.72 per cent) and VanEck (18.78 per cent).